Friday, May. 16, 2008

City releases its third quarter financial report

Mayor says Los Banos in better shape than some

The city released its third quarter financial report this month.

With three-fourths of the fiscal year gone, the numbers in the report reflect where Los Baños was financially at the end of March and how close projections were to what has actually occurred so far.

Los Baños' 2007-2008 budget included $53.6 million in revenue and $70.6 million in expenditures. The city's estimated funds balance at the beginning of the fiscal year was $56.7 million.

Overall the city has brought $38.4 million into its coffers and spent $43.6 million.

The third-quarter report focuses mainly on general fund revenues and expenditures. The document shows that 51 percent, or $7.5 million, of the general fund's estimated revenue has already been collected. Expenditures are at 71 percent, or $12.1 million. In total Los Baños anticipated bringing in $14.7 million and spending $17.1 million. The city projected a beginning balance of $6.6 million. The report shows the actual figure at $5.5 million.

The city has acquired 51 percent of its property tax revenue at $1.7 million , but Chief Financial Officer Melinda Wall said that revenue source is about to take a downturn.

"What we're projecting is a 10 percent decrease in property tax for next year," Wall said.

She said through paying attention to what's happening in the housing market she expects a continued decline in property tax revenue beyond the next fiscal year.

Los Baños' enterprise funds -- water, solid waste, wastewater and airport -- are in varying financial conditions.

The water fund had $760,779 in it at the end of the third quarter. The wastewater fund had $1.3 million in it with 31 percent of its projected expenditures realized. The airport fund was operating $24,553 in the negative, mostly attributed to slower fuel sales and revenue reductions from the loss of a major tenant. The Solid waste fund boasted $2.3 million in revenue and $2.9 million in operating and capital expenditures combined.

The Redevelopment Agency recorded $9.2 million in revenue and $820,807 in expenditures. Wall said the RDA also has another $14 million in bond proceeds.

Mayor Tommy Jones said considering the financial plight of other cities Los Baños is not doing too badly.

"I think if you look at other cities around the Valley, things are a little bit better (here)," Jones said.

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com